Nvidia buys $5 billion stake in Intel, planning AI chip collaboration

NVIDIA has agreed to purchase $ 5 billion in Intel as part of a broader deal to develop “multiple generations” of data and computer products.

NVIDIA will get the Intel share for $ 23.28 per share, which is a simple discount on the previous trading price of companies. According to Reuters, the deal will make Nvidia one of the largest Intel shareholders, and owns about 4 % of the company. Intel shares increased by up to 30 % in early trading on Thursday morning.

Companies will integrate their structures using the NVIDIA’s Nvlink interface, which allows data transfer and control of central processing units and GPU. NVLINK allows faster dusts compared to other standards such as PCI Express, which is crucial to artificial intelligence applications, which require many graphics processing units for running together and treating massive work burdens.

For data centers, INTEL will manufacture a new line of CPU X86 specially dedicated to NVIDIA infrastructure, which are presented to institutional customers and opportunities.

For the consumer computer sector, INTEL will build X86 on chips that will include slices of NVIDIA RTX graphics units, which will undoubtedly give Intel on the competing AMD CPU. Companies are naming these chips “X86 RTX SOCS”, at the present time, and claim that these chips will occupy “a wide range of computers”.

The deal comes after a few years for Intel, which has struggled to take advantage of the artificial intelligence flake race, unlike its new partner. The company brought the new CEO, placed thousands of employees as it sought to increase the margins, and manufacturing projects rose to determine the priorities of CAPEX discipline.

The deal comes in the aftermath of another quarter of NVIDIA, which has grown in both the most profitable conductors in the world, and the market rates are one of the largest companies in the world, regardless of industry. During the same period, Intel has struggled to keep pace with the fluctuations in the market, especially the requirements of extensive conductors from artificial intelligence. As a result, cooperation can allow them to support the share in the market from my competitors like AMD.

“The pioneering data platforms in intel and customer computing platforms, along with our operating technology, manufacturing capabilities and advanced packaging capabilities, will complete the leadership of AI in NVIDIA and the accelerating computing leadership to enable new breakthroughs for this industry.”